Strategic

Planning

From

A to Z !

Larry PotterfieldFounder and CEO

Strategic Planning Process

Recap

Strategic Planning A-Z1. Set the Direction (A-J)2. Deploy the Strategic Objectives (K – P)3. Create the Strategic Plan (Q-W)4. Deploy the Strategic Plan (X)5. Execute the Strategic Plan (Y)6. Control the Results of Action Plans (Z)

Set the Direction

MidwayUSA Company SWOT Analysis - 2014 Reviewed 12/19/2013, Revised 12/19/2013 by SLT

Weaknesses 1. Relentless Pursuit of our Vision drives performance excellence 1. Process Management2. Role Model Support of the Shooting Sports Industry 2. Workforce Training and Development System3. Business Administration (MLMP) 3. Workforce Capacity and Capability Planning4. Strategic Planning (Expertise, Speed and Agility) 4. Leadership Development5. Culture of Continuous Improvement and Innovation 5. Customer Listening and Learning System6. Financial Strength and Outstanding Cash Flow Management 6. Project Management7. Inventory Management 7. Business Intelligence (Information Management and Analysis)8. Information Systems Focused on Cutting-Edge Technologies 8. Market Research and Analysis 9. High-Performing, Engaged Employees who share our Values and Embrace our Culture 9. Obtaining and Using Benchmarking Information to Improve Results

10. Employee Satisfaction and Engagement 10. Recruiting High-Performing, Engaged Employees who share our Values and Embrace our Culture11. Larry Positioned as Face and Voice of Midway Representing our Brand 11. Low Cost Shipping12. Fast, Feature-Rich, User-Friendly Website 12. Competitive Pricing13. Product Selection (Just About Everything Strategy) 13. Packaging Management14. Order Fulfillment Capabilities (Nitro Express-Super Fast Shipping) 14. Freight Management15. Customer Focus/Dedication to Customer Satisfaction 15. Product Information Management16. Customer-Friendly Policies (Easy to do Business With) 16.17. Frequent, Exciting Sales and Promotions 17.18. Vendor Relationship Management 18.19. New Product Acquisition (First to Market Strategy) 19.

Threats1. Entering New Markets and Growing Market Share 1. A sudden and significant increase in Demand following a sudden event (Panic Buying)2. Personalized Marketing 2. Unfavorable view of our Industry by Partners who inhibit our Marketing/Services (Google, FB)3. Social Marketing and Monitoring 3. MAP Programs Limiting Promotional Opportunities4. Leveraging Potterfield Donations to Key Conservation Groups 4. Increasing/Changing or Unknown Regulations on Products5. Targeted Marketing 5. Legislation Affecting the Shooting/Hunting Industry6. User-Generated Web Content and Community Features 6. Computer Viruses, Malware, Phishing and Hacking7. Customer Loyalty Program 7. Internet Sales/Use Tax

Strengths - Allow us to Deliver Exceptional Results

Opportunities - Increases Satisfaction of our Stakeholders

Set the Direction – H, I Conduct SWOT & Results

Review

7.0 Results February/Q1Measure 2011 2012 Actual Goal Actual Goal

7.1 Customer Satisfaction - Overall 0 93% 93% 93% 93% 93% 93%

7.2 Employee Satisfaction 81% 85% 88% 86% 88% 86%7.3 Vendor Satisfaction 94% 94% 92% 92% 92% 92%

7.4 Shareholder Satisfaction * 99.9% 98.8% 95.4% 100% 95.4% 100%

0 Customer Satisfaction Survey results are based on rolling 90 days' data

Results for 7.1, 7.2 and 7.3 are survey results* Results for 7.4 are presented as a percent of goal

100% of goal85-99.99% of goalBelow 85% of goal

2014

Set the Direction – J – Create Strategic Objectives

2014 Strategic Objectives 2014 Actual

#1 Improve Customer Satisfaction to 95% 93.0%

#2 Maintain Employee Satisfaction at 86% 88.0%

#3 Maintain Vendor Satisfaction at 92% 92.0%

#4 Improve Shareholder Satisfaction to 100% 95.4%

Deploy the Strategic Objectives – K

Innovation

Sources include:Employees, CustomersVendors, Shareholders

Strategic Planning Meetings

*Ideas also used in process management process to improve processes

• To all employees

• Employees submit ideas for Action Plans.

• Employees help identify blind spots.

CEO and SLT

Deploy the Strategic Objectives – L Ideas Categorized

Customer Employee VendorShareholder

Cro

ss D

ock

Nit

ro E

xpre

ss 2

.0

Employee Center Program

Operation Grand Slam

MidwayUSA Loyalty Credit Card

Process Mgt Process Redesign

Create Strategic Plan – R, S, T – Analyze, Select and Prioritize Action Plans

2014 Strategic Plan2014 Strategic Objectives 2013 Actual#1 Improve Customer Satisfaction to 95% 93.0%#2 Maintain Employee Satisfaction at 86% 87.0%#3 Maintain Vendor Satisfaction at 92% 95.0%#4 Improve Shareholder Satisfaction to 100% 98.0%

Action Plan Strategic Objective Stakeholder Key Requirement Core Competency PriorityOperation Open Fire Shareholder Satisfaction 1. Grow the value of the Company through Customer acquisition and retention Marketing 1Product Center Re-engineering to Support Merchandising Work System Employee Satisfaction 9. The right tools and support to do my job Merchandising 2PH&I Re-engineering / Rateshop Customer Satisfaction 4. Low-cost shipping Logistics 3Customer Database Re-engineering Customer Satisfaction 8. Easy to do business with Marketing 4Sug Order Re-engineering Customer Satisfaction 3. In-stock products Merchandising 5Customer Credit Card Information Hosting Shareholder Satisfaction 7. Legal, ethical, and regulatory compliance Customer Support 6Employee Center Program Implementation Employee Satisfaction 9. The right tools and support to do my job Leadership & Management Framework 7Process Management Process Redesign Shareholder Satisfaction 9. Continuous improvement in productivity Leadership & Management Framework 8Competitive Price Benchmarking Process Creation Customer Satisfaction 1. Competitive Product Pricing Merchandising 9Prorated Backorder Shipping Charges Customer Satisfaction 4. Low-cost shipping Logistics 10Package Delivery Center (PDC) Customer Satisfaction 6. Fast shipping and delivery Customer Support 11MidwayUSA Loyalty Card Launch Shareholder Satisfaction 1. Grow the value of the Company through Customer acquisition and retention Marketing 12Returns Center on Website with Improved Policies and Processes Customer Satisfaction 8. Easy to do business with Customer Support 13Packaging Management (PACK-MAN) Customer Satisfaction 4. Low-cost shipping Logistics 14Customer Listening and Learning Process Creation Customer Satisfaction 8. Easy to do business with Customer Support 15Customer Satisfaction Survey Improvement Customer Satisfaction CUSTOMER SATISFACTION Customer Support 16Apply for and Win Baldrige National Quality Award Shareholder Satisfaction 6. Receive Malcolm Baldrige National Quality Award Leadership & Management Framework 17Business Intelligence Re-engineering Employee Satisfaction 9. The right tools and support to do my job Leadership & Management Framework 18Repack and Finish Work Process Re-Engineering Customer Satisfaction 6. Fast shipping and delivery Logistics 19Nitro 3.0 (Jefferson Building Integration) Employee Satisfaction 12. Safe, comfortable work environment Logistics 20Employee Satisfaction Survey Re-engineering Employee Satisfaction EMPLOYEE SATISFACTION Leadership & Management Framework 21Inventory Control & Tracking Re-Engineering Shareholder Satisfaction 2. Grow the value of the Company through growth in sales and net income Logistics 22

Create Strategic Plan – U- Integrate Strategic Plan with Workforce Planning

• Ensure the resources needed to execute the strategic plan are integrated into workforce plans.

3Create Strategic Plan

4Deploy the Strategic Plan – U

To the entire organization to facilitate engagement and acceptance of the plan.

Company StrategiesStrategic ObjectivesOrganizational Goals

Company Action Plans Departmental Action Plans

5Execute the Strategic Plan - V

• Implement the Action Plans on the current year’s strategic plan.• This is the hardest part & greatest opportunity

SLT

6Control the Results of APs

Action Plan Name Desired Results Actual Results

Improve Website Search and Browse

• Improve percentage of web sales from search by 5%* • Reduce Percentage of Searches without Results by 2%*

*fictitious data

Increased by 6%

Reduced by 1%

Recap

Strategic Planning A-Z1. Set the Direction (A-J)2. Deploy the Strategic Objectives (K – P)3. Create the Strategic Plan (Q-W)4. Deploy the Strategic Plan (X)5. Execute the Strategic Plan (Y)6. Control the Results of Action Plans (Z)

Larry PotterfieldFounder and CEO